The National Treasury Management Agency (NTMA) is being criticised for cutting interest rates and perks for An Post savings schemes.
The cuts of up to 40% were announced by the NTMA. They came into effect yesterday and will affect new fixed savings bonds.
The lowered returns on investments at An Post come following pressure from the banks who argued that they could not compete with the State schemes.
Customers with a 3-year fixed rate savings bond will see the interest rate drop from 7% to 4%, while those with the 6-year installment savings rate will see falls from 17% to 14%. But the cut will only effect new investments.
It has emerged Prize Bonds will also be hit with €1 million being given away every two months from now on. Until now, the top prize been up for grabs every month.
It will now only be given away on the last Friday of every second month in February, April, June, August, October and December.
Charlie Weston is Personal Finance Correspondent with the Irish Independent and says banks argued that they were losing out on customers to An Post.
He spoke to Breakfast here on Newstalk.
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